FERMA: Risk managers a ‘strategic partner’ on sustainability

The COVID-19 pandemic has made it clear how risks are interconnected in ways that can exacerbate the overall impact, and that managing those risks cannot be done alone, states FERMA in a new Issues Paper.

The risk and insurance management community is an important partner both inside organisations, as well as externally to build resilience, it notes.

”Corporate risk and insurance managers already have a framework that can be incredibly useful in terms of managing SDGs [Sustainable Development Goals], or sustainability risks. This framework, the Enterprise Risk Management (ERM) framework, also offers a model of good governance and practices that can integrate sustainability into already existing practices.”

FERMA believes that collective actions based on impactful partnerships are the right way to respond to crises as well as one of the key means of fostering sustainability while building resilience to future common shocks.

”Risk managers recognised the importance of ‘sustainability’ long ago and have worked on the topic for a number of years, especially in the area of responsible business conduct and climate change.”

”Risk management helps identify, measure and communicate risks related to the SDGs specific to their company. Risk managers are acting as a risk conductor within their organisation, consolidating information from other risk-related functions to give a clear and comprehensive view to the top management.”

The risk federation cites the results of the European Risk Manager Report 2020 which shows that risks related to climate change and increased digital vulnerability have been on the radar of the profession for some time. Collaboration with corporate social responsibility (CSR) colleagues has intensified as a result.

”FERMA and its members are currently developing guidelines for the contributions risk managers on sustainability. It is our intention that this can help highlight the positive partnership risk managers can offer. This belief is largely based on the fact that corporate risk and insurance managers already have a framework that can be incredibly useful in terms of managing SDG, or sustainability risks.”

”The Enterprise Risk Management (ERM) framework may also offer a consolidated model of good governance and practices that can integrate sustainability into already existing practices.”